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SECURE Act Update

On December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into federal law. The SECURE Act expands the types of eligible expenses for which assets in 529 Plans can be used, allowing 529 Plan account owners to withdraw assets without adverse federal income tax consequences if such assets are used to pay for:

Apprenticeship programs: Fees, books, supplies, and equipment required for participation in apprenticeship programs registered and certified with the Secretary of Labor under Section 1 of the National Apprenticeship Act (29 U.S.C. 50).

Student loan repayments: Principal or interest on any qualified education loan (as defined in Section 221(d) of the Code) of the beneficiary or any of the beneficiary's siblings. The loan repayment provisions apply to repayments up to a lifetime maximum of $10,000 per individual, and Section 221(e)(1) of the Code provides that you may not also take a federal income tax deduction for any interest included in that education loan repayment.

State tax treatment

The aforementioned tax advantages shall also apply for Idaho state income tax purposes. If you are not an Idaho taxpayer, the state(s) where you pay income tax may differ in its state income tax treatment of withdrawals used for apprenticeship programs and loan repayments. As with any change to law, we encourage account owners to consult a qualified tax advisor regarding the application of federal and state tax laws to their particular situation.

If you have questions about the IDeal - Idaho College Savings Program, you can reach our Customer Service team by phone at 1.866.433.2533, Monday through Friday from 6 a.m. to 6 p.m., Mountain Time.

1 Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.

2 Contributions to the IDeal - Idaho College Savings Program are deductible from Idaho state income tax, subject to recapture in certain circumstances, such as a non-qualified withdrawal or a rollover to another state's qualified tuition program in the year of the rollover and the prior tax year.

3 In the event you do not survive the five-year period, a pro-rated amount will revert back to your taxable estate.

4 An eligible institution is one that is eligible for federal financial aid programs.

Ascensus Broker Dealer Services is the distributor of IDeal - Idaho College Savings Program. Learn more about Ascensus Broker Dealer Services, LLC on FINRA's BrokerCheck.

Important Legal Information

By clicking on one of the social media icons, you are leaving the IDeal website, maintained by Ascensus, and are being redirected to a social media site solely maintained by the Idaho College Savings Program Board (“Board”). Ascensus Broker Dealer Services, LLC, the program manager for IDeal, does not monitor or endorse the Board's social media activities. All IDeal social media activities are the sole responsibility of the Board.

Mr. Thiros is a registered representative of Ascensus Broker Dealer Services LLC, 877-529-2980, 95 Wells Ave, Newton MA (member FINRA/SIPC) and is not employed by the State of Idaho.

For more information about IDeal - Idaho College Savings Program ("IDeal"), call 866-433-2533  click here to obtain a Disclosure Statement. The Disclosure Statement discusses investment objectives, risks, charges, expenses, and other important information. Because investing in IDeal is an important decision for you and your family, you should read and consider the Disclosure Statement carefully before investing.

Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You should also consult your financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 college savings plan(s), or any other 529 plan, to learn more about those plans’ features, benefits, and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

IDeal is administered by the Idaho College Savings Program Board ("Board"). ABD, the program manager, and its affiliates, have overall responsibility for the day-to-day operations, including investment advisory, recordkeeping and administrative services, and marketing. The Vanguard Group, Inc. ("Vanguard") serves as Investment Manager for IDeal. Sallie Mae Bank serves as the Savings Portfolio Manager for IDeal. IDeal's Portfolios invest in either: (i) mutual funds and a separate account offered or managed by Vanguard; or (ii) an FDIC-insured omnibus savings account held in trust by the Board at Sallie Mae Bank. Except for the Savings Portfolio, investments in IDeal are not insured by the FDIC. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns will vary depending upon the performance of the Portfolios you choose. Except to the extent of FDIC insurance available for the Savings Portfolio, you could lose all or a portion of your money by investing in IDeal, depending on market conditions. Account Owners assume all investment risks as well as responsibility for any federal and state tax consequences.

Not FDIC-Insured (except for the Savings Portfolio). No Bank, State or Federal Guarantee. May lose value.